By Sinéad Carew NEW YORK (Reuters) - U.S. investors expect banks and other financial institutions to announce large returns of capital to shareholders after the Federal Reserve publishes the first set of results from its annual “stress test” late Thursday. Even so, gains in financial shares may be muted. Many of the 38 financial firms undergoing the test are expected to boost dividends and share buybacks due to higher profits on the back of tax cuts and rising net interest income. Banks will be able to unveil capital return plans for the coming year next week after the Fed issues its second set of results that determine how much of a capital buffer the banks need. The Fed examines the health of the balance sheets of the biggest financial firms every year to ensure that they have enough capital to withstand a shock to the system in the wake of the 2007-09 financial crisis. "General headlines will be constructive with the vast majority of banks increasing their … [Read more...] about Bank investors await U.S. stress test results for capital returns
Bank of america u s trust
Last Updated Feb 16, 2011 11:28 AM EST Warren Buffett still believes in banking -- just not in Bank of America (BAC). The legendary investor has liquidated his remaining stake in the financial company. If anything, the only surprise is that Buffett didn't do it sooner. He's been steadily reducing his B of A holdings for more than two years. And no wonder. When his Berkshire Hathaway (BRK) bought into the company in the second quarter of 2007, the banking giant's shares traded well north of $40. One epic financial crisis later, they're scraping by at roughly $14.70:"He's closing out a loser," said Jeff Matthews, author of "Pilgrimage to Warren Buffett's Omaha," whose Ram Partners LP invests in Berkshire and Bank of America. "We bought it during the crisis. But its earnings power coming out the crisis has been reduced." Buffett could have many reasons for closing out his stake in B of A. Most obviously, he wants to cut his losses. The Oracle of Omaha also may not like what he sees in … [Read more...] about Why Warren Buffett Lost His Faith — and Money — in Bank of America
Last Updated Sep 14, 2009 4:43 PM EDT Crummy day for Bank of America. First, a federal judge again scotched the company's $33 million settlement with the SEC over charges the banking giant improperly disclosed $3.6 billion in financial bonuses paid to employees of its Merrill Lynch unit. The agreement with securities regulators "cannot remotely be called fair" and "does not comport with the most elementary notions of justice and morality," reportedly said U.S. District Judge Jed Rakoff in rejecting the pact for a third time. He ordered a trial due to begin Feb. 1. Second, New York Attorney General Andrew Cuomo is likely to file civil charges against B of A executives "over their role in failing to alert shareholders to mounting losses as well as accelerated bonus payments at Merrill," according to the AP. Cuomo has been playing chicken with B of A attorneys, who claim he refuses to meet with them. Responding to the report, a spokesman for Cuomo's office said there's nothing to see … [Read more...] about Cuomo Drawing Noose Around Bank of America?
A federal judge in Texas ruled this week that Minneapolis-based U.S. Bank must pay nearly $54 million for willfully infringing the patents of a small, privately held company that developed procedures for electronic check processing. DataTreasury Corp. of Plano, Texas, sued a number of banks in 2002, alleging that they stole its check processing technology. The case was so complex that the judge broke it into three phases, with U.S. Bank taking a lead role in the initial "bellwether" phase. In March, jurors found that U.S. Bank and Viewpointe Archive Services, which processes a large share of the nation's checks, had willfully infringed on DataTreasury's patents. Jurors awarded damages of $26.6 million against the two firms. U.S. Bank is a co-owner of Viewpointe. Wells Fargo and several other defendants scheduled for phase two of the case settled over the summer for an undisclosed sum, joining a large number of other banks that have negotiated settlements with DataTreasury. On Monday, … [Read more...] about U.S. Bank penalized in patent case
Joe Ciolli, provided by Published 5:04 am, Wednesday, March 7, 2018 Getty Images / Stephanie Keith History suggests the stock market will be strong in March and April, according to Bank of America Merrill Lynch's technical analysis team. The firm provides two charts that uphold its expectation for equity gains over the next two months. The next two months should treat the stock market well — at least if history is any indication. Recommended Video: Now Playing: U.S. consumer prices rose more than expected in January, with a measure of underlying inflation posting its biggest gain in a year, strengthening expectations the Federal Reserve will have to quicken the pace of interest rate increases this year. The fairly strong inflation report from the Labor Department on Wednesday put more pressure on U.S. financial markets, which were spooked by a surge in annual wage growth in January. Prices of U.S. Treasuries fell on the inflation data. The dollar … [Read more...] about Bank of America: These 2 charts suggest the stock market could soar over the next 2 months